Description: According to reports from the World Bank’s International Debt Statistics, China has become the global leader in lending as the external debt from more than 75 of the world’s poorest countries surpassed more than $441.8 billion. The report underscores that China, under President Xi’s Belt and Road Initiative geopolitical strategy managed to tie state economies mostly from Africa, South America and Southeastern Asia to its geostrategic interests. The country is involved in a high-staking trade war with the US and aims at stabilizing the stagnant national economy which at the end of 2024 showed signs of depletion. Out of the 75 countries, Pakistan owes China the most, with over $22.6 billion or almost one sixth of its external debt, followed by Argentina with $21.2 billion and Angola with $17.9 billion.
Impact: The report underscores China’s strategic outreach and interoperability on a global scale which would substantially improve the country’s geostrategic outlook. With the US unilateral withdrawal from the international scene of global affairs and the planned tax cuts, China would most probably emerge as the global leader leveraging strategic longevity through economic codependence. China also faces crucial challenges as to whether to apply pressure in collecting the owed capital in order to stimulate its slowing economy or further exploit the debt in expanding the global foothold of soft power influence. The indebted countries are also expected to face difficult domestic issues as resources would have to be diverted towards repayment obligations which would almost immediately cripple growing economies and crucial socio – economic sectors.